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Once you select a segment, you must design a brand to meet the needs of the segment. Using the computer on the road is important to the traveler segment. What features would provide this benefit? Slim, rugged, portable design 10” color flat screen for portable Network and Internet connections Using the computer on the road

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How far do you go in giving the customers what they say they want? Is more speed, software applications, memory, keys on the keyboard, etc. always valued? Could “more of some feature” even make a customer unhappy?

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What is the elasticity of the peanut? Searching for the Market’s Response Function

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Suppose you could design the ideal candy bar. How many peanuts would you put in the candy bar to make you the happiest? None A few? A bunch? A whole lot?

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Number of Peanuts Influence of peanuts on candy bar enjoyment None few bunchwhole lot Um-um good Yuk

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Which Candy Bar has the Most Peanuts? Baby Ruth Snickers Payday Milky Way

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Which Candy Bar Do You Like the Most? Baby Ruth Snickers Payday Milky Way

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What does your response function look like for peanuts? Is more always better? Would your happiness increase with every new peanut we added to the candy bar? Is there a limit?

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Here are a number of response functions. Which one applies to peanuts, chocolate, coconut, etc? Hot Cold LessMore Hot Cold LessMore More is always better More is good to a point and then ceases to add excitement

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A little is just right, more only takes away value Cold Hot LessMore Hot Cold Less More More adds value to a point & then takes away value Response Functions

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Hot Cold Less More Little interest until threshold is crossed Hot Cold LessMore Any amount is bad Response Functions

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Hot Cold LessMore No reaction/indifference to having the feature Response Functions

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Take Any PC Segment, How Excited Will It Become if You Provide? More memory More functions on the key board More software More …. Just like the candy bar ingredients, you must discover the response function for each PC component.